In what is believed to be the largest data leak in history, anonymous informants have provided an international consortium of journalists with around 2.5 million documents detailing activities in tax havens around the world.The virtual Everest of data exposes some 120,000 letterbox entities, offshore accounts and other dubious deals in more than 170 countries, in addition to the names of 140,000 individuals alleged to have placed their money in known tax havens. The list includes politicians, celebrities, weapons dealers, oligarchs, financiers and a very diverse cast of characters.

It'll be interesting what comes out of this, I'm kind of surprised that only around 4,000 American-born people are implicated in the documents, to be honest, although there is so much data the journalists are still sifting through it, and they've had it for over a year already.

Anyone think this might lead to increased cracking down on offshoring or taxes, or is it all just blowing steam? Cyprus is cited as being used to offshore money, although to a much smaller degree, which is possibly what's driving their money problems at the moment.

(Sorry I can't post anything more inciteful than a glorified link and run with a nice conversation starter, but there really is an obscene amount of information to process here.)

If there was tax evasion, the relevant authorities should have that info to investigate.Until there is a determination of wrongdoing, and in the cases of all those conducting perfectly legal transactions, this fundamental breach of privacy should be condemned rather than lauded.

If there was tax evasion, the relevant authorities should have that info to investigate.Until there is a determination of wrongdoing, and in the cases of all those conducting perfectly legal transactions, this fundamental breach of privacy should be condemned rather than lauded.

In theory, none of the transactions they've been investigating should be private, since they were made to companies or trusts which would, again in theory, need to disclose those transactions. It's not like they're opening private bank account data here.

In what is believed to be the largest data leak in history, anonymous informants have provided an international consortium of journalists with around 2.5 million documents detailing activities in tax havens around the world.The virtual Everest of data exposes some 120,000 letterbox entities, offshore accounts and other dubious deals in more than 170 countries, in addition to the names of 140,000 individuals alleged to have placed their money in known tax havens. The list includes politicians, celebrities, weapons dealers, oligarchs, financiers and a very diverse cast of characters.

It'll be interesting what comes out of this,

Me too! Are you betting on outrage news stories about welfare moms exploiting the system.. or are you betting on another direction for distraction news stories? Maybe news doubles down on the "NK threat"?

Then in a few weeks it all blows over.. if many people hear about it to begin with.

Since our governments are unwilling or unable to prosecute elites these days, I hope some Russian hackers just steal their millions out from under them. I mean the whole idea is that these holdings are hard to trace and prove ownership. It would seem difficult but very possible to a knowledgeable and funded group to take over a lot of these accounts. So much of it is from ill-gotten gains or tax evasion, most of it is basically fair game for other criminals.

Since our governments are unwilling or unable to prosecute elites these days, I hope some Russian hackers just steal their millions out from under them. I mean the whole idea is that these holdings are hard to trace and prove ownership. It would seem difficult but very possible to a knowledgeable and funded group to take over a lot of these accounts. So much of it is from ill-gotten gains or tax evasion, most of it is basically fair game for other criminals.

Things are changing very fast in many of these offshore havens, lots of pressure from the US and other countries looking to nab tax evaders. In fact, many of those offshore banks don't even want American clients anymore, too much hassle. Of course, the big kahuna tax evaders are the large corporations...

Since our governments are unwilling or unable to prosecute elites these days, I hope some Russian hackers just steal their millions out from under them. I mean the whole idea is that these holdings are hard to trace and prove ownership. It would seem difficult but very possible to a knowledgeable and funded group to take over a lot of these accounts. So much of it is from ill-gotten gains or tax evasion, most of it is basically fair game for other criminals.

Things are changing very fast in many of these offshore havens, lots of pressure from the US and other countries looking to nab tax evaders. In fact, many of those offshore banks don't even want American clients anymore, too much hassle. Of course, the big kahuna tax evaders are the large corporations...

The very same individuals named are the same ones running the show and calling the shots. They and their proxies have captured the "governments" long ago.

This after the Canadian Federal budget last week talked about closing tax loopholes and increasing enforcement to hopefully bring in something like $550M more in revenue next year. Go Figure, eh?

Just to play devil's advocate:

There is nothing inherently wrong or illegal in moving cash out of a country to an offshore account. It is merely forbidden in most countries to not pay any taxes on gains made of that capital. Hell, in many countries a case can even be made that only capital flowing back to you needs to be declared as income (and is hence taxable)...

<tongue in cheek> I am sure that the spouse of the Canadian Senator had zero capital gains at her offshore accounts </tongue in cheek>

Just something to keep in mind... there are about 6 million Americans living abroad. Most of these people (I am one) work and have bank accounts in their host countries. The U.S. considers these "offshore" accounts too. It's not always about tax evasion.

It all depends on the country. In many developing countries there are currency controls and it is illegal to move any money outside. But lets not be naive, the vast majority of offshore accounts are meant to hide money and conceal the identity of the depositor. If you're an American you are taxed on your worldwide income, so that is why many offshore banks do not want American clients anymore. Many other European countries are moving in the same direction. This probably explains the recent development of small island nations making nationality available to anyone for a flat fee.

I'm kind of surprised that only around 4,000 American-born people are implicated in the documents, to be honest, although there is so much data the journalists are still sifting through it, and they've had it for over a year already.

Obviously the picture is still incomplete, but I would speculate two things about this tidbit of information:

1) There may only be 4000 American individuals implicated, because wealthy American tax-evaders probably have their money tied up on all kinds of shell corporations

-alternatively-

2) Wealthy Americans just don't bother with off-shore tax havens, because American tax-law is already so heavily weighed in their favor that there's just no point.

If you earn your money legally, ie. through a business, you can write off so much that it is probably more of a hassle to try and hide that income - ie. not worth it. However, if you are taking bribes or drug dealing ect... you want that income to be completely hidden, invisible - that gives incentive to use an offshore account.

Consider the numbers, over $4 trillion stashed in offshore accounts around the world. That is some serious money. It would not surprise me to see renewed efforts by hard hit economies to repatriate some of that and tax it. Cyprus was actually voted one of the best offshore banking destinations a few years ago!

The UK and others already have amnesty programs, so people can declare their hidden money, then pay a flat fine.

Anyone think this might lead to increased cracking down on offshoring or taxes, or is it all just blowing steam?

I think we (as in British we, we own the BVI) should storm in and basically seize the account money until the owners can prove - with documentation - it's not illegal.

But we're not gonna. Not while the plutocrats are in charge.

So you prefer a legal system where there is the presumption of guilt and the burden of proof is entirely upon the accused?

Um, Libel is exactly this in the UK currently but no.

What I'd like is the massive systemic illegality in the financial sector to finally have some fucking blowback on the theives who perpetrated this. How much of this money do you think is the fruits of the years of corruption we've endured and continue to endure? Off the top of my head I don't think for example Imelda Marcos' daughter made all her money off the dot-com boom.

In terms of legality you're seriously telling me a country can bomb a wedding but can't effectively rob a bank?

If you earn your money legally, ie. through a business, you can write off so much that it is probably more of a hassle to try and hide that income - ie. not worth it. However, if you are taking bribes or drug dealing ect... you want that income to be completely hidden, invisible - that gives incentive to use an offshore account.

IIRC you can declare your illegal income on your taxes since you are required to do so, and the other parts of the government are not allowed to use that as evidence against you for the crime.

It is trivial for high income individuals in the US to reduce their tax rate to less than 20% and for large corporations to reduce their tax rate to 15% or less. The largest companies often pay zero. If you can create customized securities/funds because you are a key person at a financial institution, like Romney was, you can basically create an undervalued mutual fund just for yourself to avoid nearly all taxes.

For wealthy US citizens legal reasons for offshore accounts are for buying foreign securities that US brokers don't sell or in order to live abroad. There is however a cadre of wealthy US tax resisters who are basically betting that their tax evasion will not result in prison and a number of people who use foreign accounts to hide money from their spouses.

The system is very much due for a crackdown and I hope the major governments like the US and Germany get tougher on it and tougher on the micro-states that exist to steal tax revenue from the places where people actually live.

The US could just change their law to essentially assume that a foreign account is illegal unless it meets certain narrow conditions (amounts under $100-200k, living abroad, etc)

Just something to keep in mind... there are about 6 million Americans living abroad. Most of these people (I am one) work and have bank accounts in their host countries. The U.S. considers these "offshore" accounts too. It's not always about tax evasion.

Very very few of these Americans live in the Cayman Islands, the Channel Islands, British Virgin Islands, Cook Islands, Nauru, or even Switzerland.

I'm not saying it's guaranteed that you are a crook if you have an account in one of those countries but chances are good.

Just something to keep in mind... there are about 6 million Americans living abroad. Most of these people (I am one) work and have bank accounts in their host countries. The U.S. considers these "offshore" accounts too. It's not always about tax evasion.

Very very few of these Americans live in the Cayman Islands, the Channel Islands, British Virgin Islands, Cook Islands, Nauru, or even Switzerland.

I'm not saying it's guaranteed that you are a crook if you have an account in one of those countries but chances are good.

You do not have to be laundering drug money to want a bank account in a foreign nation.If someone lives in a country with weak protections or a corrupt regime, it is prudent to keep your money offshore. A lot of unsavory but politically powerful people exist in many countries in the world - would you want your money kept in a bank where your account can just be taken because some politician would rather have that money for himself?Sadly, this sort of insecurity isn't limited to Zimbabwe, but even Europe as a whole: Cyprus tipped their hand, so there is now proof that European politicians consider private bank accounts fair game to raid whenever they want the money.

Banks in the US pay practically nothing in interest, international bank transfers from the US can be a pain in the ass and take a while, there are any number of perfectly legitimate reasons to have overseas bank accounts.Putting your money into different countries can be prudent, not necessarily criminal.

I'm saddened that so many people have an attitude of 'they probably have more money than me and do something different than I do, so who cares about rule of law - presume guilt and take all their stuff'.

I'm saddened that so many people have an attitude of 'they probably have more money than me and do something different than I do, so who cares about rule of law - presume guilt and take all their stuff'.

Remember kids you can always recast anger of global financial corruption that's ruined millions of lives (except the rich, 'natch) as the politics of envy.

Having an account in the BVI that's perfectly above board is like finding a couple very much in love in a brothel.

Banks in the US pay practically nothing in interest, international bank transfers from the US can be a pain in the ass and take a while, there are any number of perfectly legitimate reasons to have overseas bank accounts.

Putting your money into different countries can be prudent, not necessarily criminal.

I'm saddened that so many people have an attitude of 'they probably have more money than me and do something different than I do, so who cares about rule of law - presume guilt and take all their stuff'.

There's a difference between an offshore account Germany, Japan, India, or Brazil on the one hand and Nauru or the Cook Islands on the other.

Sure it's possible to have a bank account in a tax haven and not be a tax cheat, but it isn't likely.

I never suggested anyone ignore the rule of law and 'take all their stuff'. I do suggest a very thorough audit. I also happen to think that custodial sentences are far too rare for tax evasion.

Putting your money into different countries can be prudent, not necessarily criminal.

True tax-free havens are artificial creations with the singular goal to attract large amounts of foreign funds, in exchange for discreet secrecy for the client. Pretty much the only legal way you can have an offshore account is if you are a nonresident of any country. Otherwise the vast majority of countries in the world will tax your local income, or your home country will. Low tax countries such as UAE are 5%, very low, but it's still a tax.

Just something to keep in mind... there are about 6 million Americans living abroad. Most of these people (I am one) work and have bank accounts in their host countries. The U.S. considers these "offshore" accounts too. It's not always about tax evasion.

Very very few of these Americans live in the Cayman Islands, the Channel Islands, British Virgin Islands, Cook Islands, Nauru, or even Switzerland.

I'm not saying it's guaranteed that you are a crook if you have an account in one of those countries but chances are good.

You do not have to be laundering drug money to want a bank account in a foreign nation.If someone lives in a country with weak protections or a corrupt regime, it is prudent to keep your money offshore. A lot of unsavory but politically powerful people exist in many countries in the world - would you want your money kept in a bank where your account can just be taken because some politician would rather have that money for himself?Sadly, this sort of insecurity isn't limited to Zimbabwe, but even Europe as a whole: Cyprus tipped their hand, so there is now proof that European politicians consider private bank accounts fair game to raid whenever they want the money.

Banks in the US pay practically nothing in interest, international bank transfers from the US can be a pain in the ass and take a while, there are any number of perfectly legitimate reasons to have overseas bank accounts.Putting your money into different countries can be prudent, not necessarily criminal.

I'm saddened that so many people have an attitude of 'they probably have more money than me and do something different than I do, so who cares about rule of law - presume guilt and take all their stuff'.

I'm intent on the rule of law, not lynch mob justice.Championing the desire to deprive people of any privacy and take all their stuff because they belong to a different demographic should be abhorrent to any civilized person.This is not 'carrying water for the rentiers', this is basic respect for human rights over thuggish barbarism.

I'm intent on the rule of law, not lynch mob justice.Championing the desire to deprive people of any privacy and take all their stuff because they belong to a different demographic should be abhorrent to any civilized person.This is not 'carrying water for the rentiers', this is basic respect for human rights over thuggish barbarism.

The rule of law only applies to people who can't afford to shield themselves from it. Libertarians are the most naive.

I'm intent on the rule of law, not lynch mob justice.Championing the desire to deprive people of any privacy and take all their stuff because they belong to a different demographic should be abhorrent to any civilized person.This is not 'carrying water for the rentiers', this is basic respect for human rights over thuggish barbarism.

ITT we have had exactly one person suggest that the British government seize bank accounts in the British Virgin Islands, and even that poster wanted to have a process for claiming accounts.

That hardly constitutes an overwhelming consensus in favor of confiscation of oversees bank accounts. Furthermore this whole 'demographic' charge is an attempt to see class warfare where there isn't any. 'Has money in a bank haven' isn't a demographic classification.

ITT we have had exactly one person suggest that the British government seize bank accounts in the British Virgin Islands, and even that poster wanted to have a process for claiming accounts.

That hardly constitutes an overwhelming consensus in favor of confiscation of oversees bank accounts. Furthermore this whole 'demographic' charge is an attempt to see class warfare where there isn't any. 'Has money in a bank haven' isn't a demographic classification.

If they repatriated the bank accounts and snipped 20% off the top off each of them, then grant amnesty, that would gain billions of pounds of tax revenue.